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0 www.bayan.com.sg 2018 Guidance
0 www.bayan.com.sg
2018 Guidance
1
Executive Summary
The Group continues to aggressively expand its production and sales
volumes on the back of the successful expansion achieved in 2017. We
anticipate that prices will remain good and the Group will perform strongly
Total production and sales is Budgeted to be in the range of 25 to 28 million
MT.
ASP anticipated to be in the range of US$ 48-52 / MT based on the
benchmark reference price (NEWCASTLE) being on average US$ 85 / MT for the year
Cash costs anticipated to be in the range of US$ 28-32/MT (include COGS,
Royalties, and SGA) Capex is Budgeted to be in the range of US$ 80 to 120 million
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Overburden Removal Volume (OB)
Overburden Removal
(million BCM)
(million BCM)
Note : 2017D figures are unaudited figures 2
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FY18 Overburden Removal volume is budgeted to increase principally due to the increased production at Tabang.
159
96
41 33
84
100 - 120
2013 2014 2015 2016 2017D 2018B
Quarterly Overburden Removal
2017D 2018B
Gunungbayan Pratamacoal - Block II 2 3 to 7
Perkasa Inakakerta 8 5 to 8
Teguh Sinar Abadi/ Firman Ketaun Perkasa 40 35 to 39
Tabang Concessions 24 46 to 51
Wahana Baratama Mining 10 11 to 15
Total 84 100 to 120
(in million BCM)OB
23 - 28 23- 28 28 - 33 26 - 31
1Q18B 2Q18B 3Q18B 4Q18B
Coal Production
Coal Production
(million MT)
(million MT)
Note : 2017D figures are unaudited figures 3
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FY18 Production Volume is anticipated to increase primarily due to the increase in production at Tabang despite a slight increase in overall weighted average stripping ratio combined with coal extraction reaching commercial levels at GBP
Quarterly Coal Production
6 - 7 6 - 7 6 - 7 6 - 7
1Q18B 2Q18B 3Q18B 4Q18B
2017D 2018
Gunungbayan Pratamacoal - Block II - 0.4 to 0.6
Perkasa Inakakerta 1 0.9 to 1.2
Teguh Sinar Abadi/Firman Ketaun Perkasa 3 2.7 to 3.0
Tabang Concessions 16 19.0 to 22.0
Wahana Baratama Mining 1 1.0 to 1.2
Total 21 24 to 28
Coal Production(in million MT)
14
10 11
10
21
24 – 28
2013 2014 2015 2016 2017D 2018
Weighted Average Strip Ratio (SR)
Weighted Average Strip Ratio
Note : 2017D figures are unaudited figures 4
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FY18 Weighted Average Strip Ratio is budgeted to increase slightly, primarily due to higher stripping ratios at Tabang and WBM, caused by the continuation of Wahana into the Snake Pit and slightly higher at Tabang due to increasing each of the mining areas closer to their Life-Of-Mine stripping ratios
11.6 10.0
3.8 3.4 4.0 4.0 – 4.5
2013 2014 2015 2016 2017D 2018B
4.1 - 4.3 3.9 - 4.1 4.5 - 4.7 4.5 - 4.7
1Q18B 2Q18B 3Q18B 4Q18B
2017D 2018
Gunungbayan Pratamacoal - Block II - 12.0 to 14.0
Perkasa Inakakerta 7.2 7.6 to 7.8
Teguh Sinar Abadi/ Firman Ketaun Perkasa 13.6 13.2 to 13.7
Tabang Concessions 1.5 2.2 to 2.4
Wahana Baratama Mining 8.9 13.4 to 13.8
Total 4.0 4.0 to 4.5
Weighted Average SR (:1)Weighted Average SR
Quarterly Weighted Average SR
Cash Costs
(US$ / MT)
Average Cash Costs per MT(*) Sing Gas Oil Price(*)
(US$ / liter)
FY18 Average Cash Costs is anticipated to be in the region of US$ 28 to 32/ MT
5
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*(1) Average cash costs include barging, royalty, and SGA (2) 2017D figures were unaudited figures
71 65
43
30 29 28 to 32
2013 2014 2015 2016 2017D 2018
0.9 0.8
0.5 0.3
0.4 0.5 -0.6
2013 2014 2015 2016 2017 2018B
* Published by ANZ Singapore, including PBBKB and VAT
Coal Sales
Coal Sales Volume
(million MT)
FY18 Budgeted Sales Volume is in the range
of 25 to 28 million tonnes
As of 01 January 2018, order book at 18.3
million MT of contracted sales volume for 2018
• 22% on fixed price basis
(million MT)
Quarterly Coal Sales
Geographic Distribution 2017- Draft
Note : 2017D figures were unaudited figures 6
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Japan
15 12
9
13
20
23 – 27
2013 2014 2015 2016 2017D 2018
5 – 6 6 - 7 6 – 7 6 – 7
1Q18B 2Q18B 3Q18B 4Q18B
India, 25%
Malaysia, 16%
Korea, 16%
Japan, 11%
Taiwan, 11%
Indonesia, 10%
Others, 11%
Average Selling Price (ASP)
Average Selling Price(*)
7
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FY18 ASP is anticipated to be in the region of US$ 48 to 52/ MT; Based on the benchmark reference price (NEWCASTLE) being on average US$ 85.0/ MT in 2018
* (1) ASP includes coal and non-coal s
(2) 2017D figures were unaudited figures
(US$ / MT)
78 69
52 43 52 48 – 52
1.00
11.00
21.00
31.00
41.00
51.00
61.00
71.00
81.00
91.00
2013 2014 2015 2016 2017D 2018B
4,200
6,300 CV GAR
Committed and Contracted Sales
Note : 01 January 2018
As at 01 January 2018 committed and contracted sales were 18.3 million MT with an average CV of 4,604 GAR kcal/kg
2018 Fixed Price element with
an average CV of 4,461 GAR kcal/kg
2018 Floating Price element with an average CV of 4,644 GAR kcal/kg
Additional sales will be made as progressive production targets are met throughout the year
8
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22%
78%
18.3 million MT
Fixed Price Floating Price
2018
Capital Expenditure
(US$ million)
2018 CAPEX
9
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Major capital projects undertaken
include:
• Initial spend on new Haul Road
to Mahakam and Port Facilities
•BCT Upgrade
•Site Dump 4 and 3rd Barge
Loader at Senyiur
•ROM Pad 2 crushing and silo
facilities
•Asphalting and Upgrade of
existing 69KM Senyiur Coal Haul
Road
80.0-120.0
Buildings & Infrastructure
Equipment and Machinery
Office Equipment Transportation Equipment
Tabang
Pakar
Mamahak
Appendix
10
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PT Perkasa Inakakerta PIK
PT Teguh Sinarabadi TSA
PT Firman Ketaun Perkasa FKP
PT Wahana Baratama Mining WBM
PT Fajar Sakti Prima FSP
PT Bara Tabang BT
PT Brian Anjat Sentosa BAS
PT Tanur Jaya TJ
PT Silau Kencana SK
PT Orkida Makmur OM
PT Tiwa Abadi TA
PT Sumber Api SA
PT Dermaga Energi DE
PT Bara Sejati BS
PT Apira Utama AU
PT Cahaya Alam CA
PT Mamahak Coal Mining MCM
PT Bara Karsa Lestari BKL
PT Mahakam Energi Lestari MEL
PT Mahakam Bara Energi MBE
PT Graha Panca Karsa GPK
Appendix
11
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Kangaroo Resources Limited KRL
PT Dermaga Perkasapratama DPP
PT Indonesia Pratama IP
PT Muji Lines Muji
PT Bayan Energy BE
PT Metalindo Prosestama MP
PT Sumber Aset Utama SAU
PT Bara Karsa Lestari BKL
PT Karsa Optima Jaya KOJ
Disclaimer
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This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events.
These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.
Thank You
For more information, please contact :
www.bayan.com.sg
